THE Philippine Stock Exchange (PSE) has given its nod to the stock rights offering (SRO) of solar energy power plant firm Solar Philippines Nueva Ecija Corp. (SPNEC) to list around 1.88 billion shares (1,875,649,995).
In its notice of approval dated July 28, 2022, the PSE also approved the proposed SRO timetable, with an ex-date of Aug. 22, 2022, date of record of Aug. 25, 2022 and offer period from Aug. 30, 2022 to Sept. 5, 2022.
Last month, the Securities and Exchange Commission also issued a confirmation of exempt transaction confirming that the solar power firm’s planned SRO is exempted from the registration requirements of the Securities Regulation Code.
SPNEC is planning to offer the shares at a price range of P1.50 to P1.76 per share, according to its prospectus as of July 11, 2022.
The company is looking to raise around P2.8 billion to P3.3 billion from the offer which will then be allocated toward project developments (including securing land and off-take agreements).
This is also in support of SPNEC’s goal of developing 10 gigawatts of solar projects by 2025, enabled by its increase in authorized capital stock and asset-for-share swap with its parent company, Solar Philippines.
The company’s developments include the 3.5 GW solar, 4.5-gigawatt hour battery Terra Solar project, which plans to supply Meralco 850 megawatts (MW) of mid-merit. This has been touted as the “world’s largest solar project” and would be more than two times the total capacity of solar operating in the Philippines today.
These also include projects that were contracted in the Department of Energy’s Green Energy Auction, in which Solar Philippines won 70 percent of all the auction’s renewable energy capacity (1380 MW out of 1967 MW) and 91 percent of all the solar capacity (1350 MW out of 1490 MW).
The shares of Solar Philippines in these projects are among the assets that would be owned by SPNEC after the share swap.